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“These measures already put us in the middle range of countries in terms of an implicit carbon price. We need to be ruthless about getting rid of this over-burden of regulation,’’ she said.

Climate Change Minister
Greg Combet
raised the possibility of the federal carbon scheme taking the place of the GGas system but said it was a matter for NSW government.

“We would not consider that the continuation of the NSW Greenhouse Gas Reduction Scheme would be necessary in light of our Clean Energy plan and the Carbon Farming Initiative. However, the continuation or closure of the scheme is a matter for the NSW government to consider," Mr Combet said.

Landfill facilities now part of the GGas scheme are “currently interested in becoming accredited under the [federal government’s] Carbon Farming Initiative", he said.

“The federal government has committed to address issues with existing waste coal mine gas generators currently under NSW GGas by their inclusion in the renewable energy target. This remains the case," he said.

The debate came as Queensland Resources Council chief executive Michael Roche told a Senate Committee hearing in Brisbane he was “puzzled" by the state government’s failure to highlight losses of $1 billion in coal royalties he said would result from the federal government’s carbon scheme.

“According to independent analysis by consultants ACIL Tasman 2700 Queensland coal workers would be out of jobs by as early as 2018 owing to the premature closure of both gassy and low margin mines," Mr Roche said.